Yen Mixed as Traders Go Short
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USDJPY: Retail trader data shows 56.9% of traders are net-long with the ratio of traders long to short at 1.32 to 1. In fact, traders have remained net-long since Jan 09 when USDJPY traded near 117.828; price has moved 5.4% lower since then. The number of traders net-long is 6.0% lower than yesterday and 25.0% lower from last week, while the number of traders net-short is 6.5% lower than yesterday and 68.5% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
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